Game Developer Tax Guide

Q: How do I report the settlement I receive from Steam for game sales?

You book it as revenue based on Steam's Sales Report, converted at the exchange rate on the date the sale actually occurred, and review whether overseas sales qualify for the zero VAT rate.

Q: I'm developing an indie game — is a Unity subscription recognized as an expense?

Yes, subscription and license fees for engines used in game development are recognized as necessary expenses. Just keep your payment documentation.

What exchange-rate date should I use to report game sales revenue I'm settled in dollars on Steam?

You need to convert to KRW at the exchange rate on the date the sale actually occurred, based on Steam's Sales Report, and book it as revenue — using the actual bank deposit date instead can cause your VAT and income tax filing amounts to be off. You can review whether overseas sales qualify for the zero VAT rate, and engine licenses and subscriptions like Unity and Unreal Engine are recognized as necessary expenses once you keep your payment documentation, so we recommend carefully organizing your revenue-recognition timing and exchange-rate records.

Income Structure Features for Game Developers

A high proportion are full-time employees at game companies, but active solo indie game development too

Post-launch revenue royalty and incentive (bonus) structures are common

Foreign-currency settlements through overseas platforms like Steam and app stores are frequent

Key Necessary Expense Items

Unity and Unreal Engine licenses and subscriptions

Game asset store purchases (characters, sound, etc.)

Test consoles and mobile device purchases

Game server hosting and bandwidth costs

Registration fees for game shows and exhibitions like G-Star

Tax Advantages for Game Developers

Reviewing zero-rate VAT on Steam/App Store settlement income

We review the zero-rate VAT requirements for settlements through overseas platforms.

Making the most of indie solo-developer tax benefits

We review the youth startup tax reduction alongside the Nolan Umbrella Fund.

Reviewing R&D tax credit eligibility for game development

If there's a genuine R&D element, like a new engine technology or AI NPC, we review your eligibility for the tax credit.

The Most Common Mistake in the Field

Some people, after launching a game on Steam, mistakenly convert the dollar-denominated settlement to KRW based on the actual bank deposit date rather than the revenue-recognition date, causing their VAT and income tax filing amounts to be off.

Frequently Asked Questions

How do I report the settlement I receive from Steam for game sales?

I'm developing an indie game — is a Unity subscription recognized as an expense?

An overseas publisher withheld its own country's tax from my settlement. Am I being taxed twice?

Publishers withhold tax under the laws of the country where they're located in some cases. Tax already paid abroad can be credited against your domestic comprehensive income tax through the foreign tax credit, reducing double taxation. Withholding rates may be reduced or exempted under the tax treaty between Korea and that country, so it's worth checking in advance whether you can claim treaty benefits by submitting documents such as a certificate of residency.

Related Roles Worth a Look

Full-Stack Developer

A developer who handles both frontend and backend to build the entire service

App Developer (iOS & Android)

A developer who builds smartphone apps with Swift, Kotlin, Flutter, and more

Embedded Developer

A developer who builds the embedded software that controls hardware — appliances, cars, IoT devices

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